9/21 Friday – Jumped in bearish just before close

This is very unlike me to jump in right before close like this especially when we are just sitting above the major pivot/support area ($116).    I had my bearish trigger just below that pivot area and I would normally wait until Monday to see if I get triggered. But in this case, I did jump into this bearish position literally like 5mins before close.

And here is the reason why.

1. 6 trading days ago, after this huge bullish rally we threw a doji (bulls are tired)
2. After 2 spinning tops, we threw a bearish engulfing reversal (strong signal) pattern.
3. We gaped down with a dragon fly doji (gap is remained open which I was suspecting maybe it’s a bearish break-away gap)
4. Friday- We threw a ANOTHER bearish engulfing reversal pattern
5. Volume – We haven’t had this kind of bearish volume in 4-5 months!

These were my analysis that led me to jump in bearish before close on Friday.  I think we are going to tank next week. Possibly another gap down on Monday. Possibly..

Target is at $106.  And let me ensure you that that target is little premature to say that we are going to get there because the Indexes have not yet shown us that we are going bearish yet..  There are sentiments that are suggesting we might but nothing confirmed.

So where are the stops for short-term? Let’s look at my moving averages.

Here are the short-term resistances that could use as your targets for next week.

We are currently sitting on 10 EMA.  Next resistances 20EMA, 50EMA, then 200SMA (red).

William %R – coming out of overbought territories and starting to roll over supporting this bearish move.

Will update more next week.

9/25 Tuesday – Bearishness Continues..

Moved down my stop a little bit.  I would probably move my stop just above that major support depending on how it moves tomorrow.

Today we broke that major support area at $116.  Also broke 20EMA (not shown in the chart).

Targets are still at $106 and $98.

BEAUTIFUL~~~

9/27 Thursday – Uh Oh..

Well definitely something consider here. We got a Morning Star Reversal early signal here.

It’s one of the stronger form of reversal signal but I am not putting too much weight on it because of the location.  That support isn’t a major pivot where stock completely changes direction on that pivot area.  There are some areas where stock slowed down on that price level but nothing major…

However got to respect the candle patterns so definitely something to watch out for.  My stop is still the same up top where the gap is.

9/30 Sunday – Continuation pattern

Possibly we are forming a bearish pennant or flag pattern.  I am guessing with might throw a doji or a spinning top inside that pennant triangle and Tuesday or Wednesday continue bearish.  (I am guessing)

Oscillators are still very bearish and moving averages are actually more bullish looking at it in a big picture. But currently 10EMA is holding as resistance.  If 10EMA continues, we can possibly get down to 50EMA this coming week.

Tightened my stop

10/1 Monday

-Got Stopped Out

Oh well~  Maybe I should’ve closed it out on that $112 support there.